How to Prepare for a Slow Economy

In spite of all the happy talk in the news media about positive economic growth, I feel the economy has not improved much. More and more families are finding it difficult to make ends meet. Many people live paycheck to paycheck if they are lucky enough to have a job, while many are unemployed or have stopped looking. See Year Ends in Economic Slump: “More Americans Than Ever Living in Poverty”

I’ve covered the stagnant economy and money saving ideas a number of times in many different posts. People are still worried about jobs, high food prices, and the ever increasing deficit. I think the most important thing people can do is be prepared for anything.

As the new year begins, make a firm decision to become prepared and do everything you can towards this goal.

Buy food and other necessities now while the prices are still manageable. Buy items on sale and combine with coupons. Even if nothing happens, you know prices are only going to increase so you really can’t lose by setting aside a good stockpile.

Even if you are employed and are comfortable with your finances, save some money and avoid getting into new debt.

Have a “worse case scenario” plan on what you would do if there were an economy collapse and the main wage earner of the family were to lose his or her job. What if you can no longer pay your rent or mortgage? Would you combine forces with your family and move in with them? These are not pleasant thoughts, but if you deal with them now, you avoid going into shock later. You will also be able to make a plan and take action now to ensure a better outcome.

Value your job. Make yourself as valuable as possible by volunteering to learn new skills, exceeding your boss’s expectations and being a team player.

Pick up a “side gig” or two to supplement your income. It can be as simple as selling books and items you no longer need, or making crafts and selling them online.

Eliminate spending on services you no longer use: ditch cable if you are no longer on contract, get rid of the gym membership if you never go, stop those magazine subscriptions that you never read.

Maintain your car and make it last as long as possible.

Instead of buying, find a way to make things yourself. All you have to do is try. Try making your own bread, cereal, yogurt, muffins, laundry detergent – even dog treats. You can even make your own skincare products. These are easy projects that can be done in a few minutes.

Don’t use shopping as entertainment – having fun does not have to cost a lot.

Don’t neglect your emergency supplies. Build your emergency food, water and necessities, buying a small amount as you can afford. Continue to stockpile but make sure you rotate your supplies to avoid waste.

What do you think? Please share your comments below on what you think people should do in this troubled economy. I’ve gotten many great ideas from comments and suggestions. In the coming months, I will write more on these subjects.